AI Investments on the Rise: QUALCOMM and Developments in the AI Industry

The dynamic progress of Artificial Intelligence (AI) continues to capture the interest of investors worldwide. How will established companies like QUALCOMM position themselves compared to emerging AI players? These questions equally occupy analysts and investors. Last week, the awarding of the 2024 Physics Nobel Prize caused a stir, as it went to scientists John Hopfield and Geoffrey Hinton for their groundbreaking work in the field of machine learning. Hopfield's research on neural networks, which can store and reconstruct complex data patterns, has significantly expanded the possibilities of AI. At the same time, Hinton's discoveries substantially improved machines' ability for image and pattern recognition. There is also much happening in the startup scene: An extensive report by Reuters highlights that OpenAI recently raised an impressive $6.6 billion and is now valued at over $157 billion. Other young companies that secured over $500 million in funding this year include xAI, CoreWeave, Scale AI, and other tech firms. Overall, these startups experienced remarkable increases in valuation of over $2.5 billion. The renowned financial institution Goldman Sachs also forecasts global investments of nearly one trillion dollars for the development of AI infrastructures. A notable increase in investments reflects the growing worldwide demand for AI technologies. In 2024 alone, venture capital deals worth $22 billion have already been concluded. According to a recent analysis, QUALCOMM ranks 11th among the indispensable AI stocks. Despite promising prospects, it is clear that other AI companies may achieve higher short-term returns.